Chief executive Barbara Young said: "There is a need for meters to be installed quickly in areas where water resources are stressed.

"In the South East we would like much of this to be achieved by 2015 - as long as social safeguards are in place to protect low income and vulnerable households."

Hosepipe bans lifted

The government is running a simultaneous consultation on proposals for compulsory water metering.

Environment minister Ian Pearson said: "Metering saves water, on average 10% per household, and in areas of serious water stress metering may be a valuable additional tool in... reducing unnecessary water use and waste."

But such measures would run in tandem with water companies' obligations to meet leakage targets and develop new and sustainable water resources.

Any inclusion of metering in their management plans would not come into effect until 2009.

Folkestone and Dover Water, in Kent, became the first company to get approval for compulsory water metering last year.

The two-year drought in south-east England has seen widespread water restrictions in place.

But Thames Water, Southern Water, Three Valleys Water and Sutton and East Surrey Water recently lifted their hosepipe bans, while South East Water and Mid Kent Water are due to review theirs.